This article provides a direct and detailed overview of tax residency rules for individuals in Panama as of 2025. As a low-tax jurisdiction, Panama continues to offer favorable conditions for international professionals and asset holders, making it a preferred option for tax residency planning.
Panama Tax Residency Rules in 2025
The determination of individual tax residency status in Panama is relatively straightforward. Panamanian authorities apply a single primary rule based on physical presence, with no additional criteria related to economic, habitual, or family interests.
Tax Residency Criteria Table
| Rule | Threshold/Requirement |
|---|---|
| Minimum Days of Stay | 183 days per calendar year |
| Center of Economic Interest | Not applicable |
| Habitual Residence Rule | Not applicable |
| Family Tie Rule | Not applicable |
| Citizenship Rule | Not applicable |
| Extended Temporary Stay Rule | Not applicable |
183-Day Rule Explained
The central test for tax residency in Panama is simple: any individual who spends more than 183 days in the country during a single calendar year is automatically considered a tax resident for Panamanian purposes.
There are no supporting criteria or alternative tests such as economic center, habitual residence, family links, or citizenship status.
No specific provisions exist regarding temporary extended stays, meaning only physical presence matters for determining tax residency. If you do not cross the 183-day threshold, you are not a tax resident under Panamanian law in 2025.
Absence of Additional Tax Residency Tests
Compared to some other tax jurisdictions, Panama’s framework does not consider a person’s economic interests, habitual residence patterns, or family center. Nor is there an automatic link between citizenship and tax residency status. This reduces subjective or discretionary assessments, resulting in clear and predictable residency determinations based solely on days spent within Panamanian territory.
Statutory Overview & Key Points
- Threshold: Over 183 days per calendar year in Panama leads to tax resident status.
- No Economic Interest Test: Residency is unaffected by business or financial ties within the country.
- No Family or Home Test: Living arrangements and familial links are not examined.
- No Citizenship Connection: Holding Panamanian citizenship does not, in itself, confer tax residency.
No Additional or Alternative Residency Rules
Based on currently available data, Panama does not maintain any secondary or auxiliary tests for establishing tax residency in 2025. Only the physical presence rule (183 days) applies. There are no published exceptions or administrative discretion noted in the current regulatory environment.
Pro Tips for Navigating Panama’s Tax Residency Rules
- Track your entry and exit dates meticulously. Immigration records can serve as the primary evidence for residency determinations in Panama.
- If you spend fewer than 184 days in Panama in a calendar year, you will not be classified as a tax resident, regardless of your ownership of assets or business interests in the country.
- Maintain documentation of your travel history, as these may be requested by local authorities for residency audits.
- Understanding Panamanian residency rules can help optimize your global tax position—consider combining Panama’s straightforward approach with a broader asset strategy.
- When applying for tax certificates or seeking official residency confirmation, liaise only with official government channels such as Ministry of Economy and Finance of Panama for up-to-date forms and requirements.
Official Resource
For further details on current regulations and residency applications, refer directly to the Ministry of Economy and Finance of Panama.
To summarize, Panama offers a clear and simple statutory test for individual tax residency in 2025: reside more than 183 days in the country and you become a tax resident—no other criteria are currently in force. This straightforward policy streamlines compliance and planning, but always keep thorough records to substantiate your residency position should it be required by authorities.